Save and invest! The pandemic is not over and the economy for 2022, including that of Ecuador, is projected to perform poorly

The Wilson Center study center, based in Washington, United States, has given a clear alert to Latin American countries, including Ecuador: the future of the region’s nations (speaking of 2022) will be marked by low growth and an increase in the price of products. A grim prognosis for the post-pandemic outlook.

In this context, it is essential that Ecuadorians maintain a level of savings that allows them to overcome obstacles next year, reach a goal such as the purchase of a good, personal studies or children or, especially, be able to face a possible increase in the cost of money. life.

Although figures from the Association of Banks of Ecuador (Asobanca), as of last October, show a growth of 0.65% in savings deposits and these amount to $ 10,515 million, a study of the Development Bank of Latin America (CAF), published in May of this year, indicates that 60% of Ecuadorians do not save and that 68% are not able to face an unforeseen financial situation.

In months like December, consumption tends to skyrocket, as workers receive more income (décimo or aguinaldo) and the Christmas holidays are celebrated. Experts advise saving and investing.

During the COVID-19 pandemic, expenses considered unnecessary such as leisure were restricted in several households and this began to leave a margin of savings for families, but with the reopening of the economy the so-called ant expenses have returned (coffee, cigarettes , refreshments, snacks and sweets, without forgetting the expenses on platforms like Netflix).

Héctor Pérez affirms that little by little he has been increasing his level of spending without noticing it. He has started going out with friends: “Coffees, beers, meals. When I received the status of the card, a month ago, I could see that my spending level went up ”. Because with the “fair” he managed to pay the card, he will “reconsider” his exits, he says.

“The impact of the pandemic still continues, especially in countries where the population has not been vaccinated in a greater percentage. In addition, in Ecuador, which has already vaccinated a high percentage, an increase in infections is beginning to be observed after the holiday. For this reason, we must continue to be proactive and save”, Indicates Paola Aulestia, financial expert.

A better level of saving is maintained in Ecuador and is practiced a little more by women

The specialist says that “we must continue to be very cautious” and efficiently manage household resources: “This means that what we earn we manage appropriately in each of the months of the year.”

It states that one of the tools that can be implemented is the figure of the family budget, in which children, adolescents and adults must participate.

“This allows expenses, costs and income to work together. This will allow us to make smart purchases. If you have to manage the issue of Christmas shopping, it is better to focus on gifts that come from the heart, which can be made with recycled items, “he adds.

Ideally, set a monthly goal to save. In other words, allocate at least 20% of income to savings.

Nevertheless, just having money saved in a financial institution will not “multiply it and that is why it is necessary to look for the mechanisms to invest it properly”, explains Daniel Adler, financial expert.

“The dollar is a currency that depreciates. It is not like having a gold bar, having property or merchandise that is later sold. Only saving will not generate more money. Of course, between saving it and spending it, the first thing will always be better, but the money must always be invested, not fixed or static”, dice.

In Ecuador, the deposit rate is between 0% and 1%, depending on the bank and the amount, so it is recommended to invest and not just save. Although before choosing any type of mechanism to generate returns, Adler advises investing in financial education.

Tips to be able to generate savings each month

“The most valuable and most important asset in the world is our brain. To know what we should do with money we must have a certain level of financial education. Also, if we want financial freedom, we must create a brand and sell something, “he adds.

According to figures from the Central Bank, as of 2019, 96% of Ecuadorians have never received financial education. This indicator is replicated in Latin America, says Adler.

“Now several governments have started talking about financial education, but there is a small trap because what they do is provide financial inclusion. They teach us to bank, use a credit card, but there is no financial education plan in schools”, dice.

Topics that should be addressed, Adler argues, are, for example, branding, productive habits, productivity, time-block work, asset-liability distinction, financial freedom.

This year you have 40% of time left and if you haven’t met your goals, it’s time to make an emergency plan, economics experts say

In addition, he does not agree with reducing expenses, since consumption moves the economy of the countries: “The idea is to earn more and not spend less and less. You have to find a way to increase your income. Statistics tell us that 88% of workers don’t like doing what they do and 99% think they should earn much more. So, it is time to start undertaking, to get out of the comfort zone ”.

Three tips for saving and investing

• Setting medium and long-term goals is elementary. For example, if you save $ 60 per month at the end of a year, you will have $ 720 and this can cover the purchase of some good or the purchase of merchandise.
• Set realistic goals with specific goals. If there is no saving habit, start with short-term goals of three or six months.
• Save to invest. Investments are a great way to keep your economy healthy and achieve financial freedom. Invest in assets, merchandise that can later be sold at a higher value, fixed-term policies. It is not enough just to have your money in a common savings account, because there the interests are low. (I)